Understanding Auto Insurance

Automobile insurance coverage provides important protection against losses that could be incurred due to an accident. Accidents happen suddenly with no warning—so before one happens, you should understand your coverage options and how you may be protected or not so protected in your next accident.

If you have been injured in an automobile accident, one of the first things you will want to know is how much insurance coverage is available. The answer to that question depends on two things: (1) how much insurance coverage the other driver has, and (2) how much insurance coverage you have. There are a three primary types of insurance. When a driver has all three categories of insurance, generally insurance companies will say that person has “full coverage.” But, in reality, the term “full coverage” is meaningless. Rather than full coverage, driver’s should have high amounts of the following coverages:

MINIMUM LIABILITY INSURANCE COVERAGE

Liability insurance covers injuries and damages to other people or property if you are to blame for causing a crash. In other words, liability coverage protects anyone who the driver of a vehicle may injure. The minimum amount of liability insurance depends on the state. Georgia law requires each driver to have a minimum coverage of $25,000 per person in each accident and $50,000 total per accident.

This means if you are hit by another driver, that driver should have at least $25,000 in insurance that you can recover. $25,000 may seem like a lot of money, but that amount would have to pay your medical bills, make up for your lost wages, and compensate you for pain and suffering. The truth is medical bills alone often exceed $25,000, leaving you with no money in your pocket after paying those bills.

Unfortunately, while drivers should have insurance, estimates show about 16% of Georgia drivers and almost 14% of drivers across the county are uninsured.

UNINSURED MOTORIST (“UM”) COVERAGE

UM coverage protects you if you are involved in an accident with someone who does not have liability insurance or does not have enough liability insurance to compensate you for your injuries. You get UM coverage through your own insurance company, and then if needed after a wreck, you can recover from your insurance company.

Imagine you are hit by another driver and suffer $100,000 in damages. If the driver who hit you only has $25,000 in insurance coverage, then you could be out of luck. But, not if you have UM coverage.  If you have $75,000 in UM coverage, then you would be able to recover $25,000 from the at-fault driver’s insurance and $75,000 from your insurance, making the total $100,000.

MEDICAL PAYMENTS (“MED PAY”) COVERAGE

Med pay coverage will pay for medical bills suffered because of an auto accident, regardless of who caused the accident. Med pay is like health insurance, because it allows your to receive and pay for medical coverage, but unlike health insurance, it will only pay for treatment needed because of the accident. Med pay can also be used to pay for the medical bills of other passengers who were in your car at the time of the wreck.

Here is what a typical automobile insurance policy looks like. This policy covers 2 different cars. Pay particular attention to the highlighted sections, which shows the coverage amounts for liability, UM, and med pay:

Auto Accident Insurance 1

Auto Accident Insurance 2

You don’t need to be an expert in auto insurance, but your lawyer does. Mike Rafi knows all of the ins and outs of insurance coverage, so you can recover all of the insurance that is available to you after an auto accident. Mike has helped clients recover from liability, UM, and med pay coverage. If you have been involved in an auto accident, contact Mike Rafi.

Contact Mike Rafi

ADDRESS

1201 WEST PEACHTREE STREET NW

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ATLANTA, GEORGIA 30309

1895 Phoenix Boulevard

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College Park, GA 30349

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